Jane, In most cases that is an excuse. Clients buy on emotions and ideas, if you present and idea they like and feel will work for them they will find the money to support the campaign. Are they currently utilizing the newspapers? If so, I have a great come back with visual proof that gets them to think and many times you will get the buy. If you want to email me I will send you that information and how it is presented. my email address is [email protected]
Great question! But before you can conquer this one, you will have to question yourself:
1) Do I believe I can help this business?
2) Will I do everything I can to help this business?
If you answered yes to both then read on.
The budget is shot because they have more going out than coming in. They are short on sales. If you assume that their business is solid and has a unique selling proposition of some kind, then your job is to present this to the listeners of your stations in a way that will make them want to come in and shop this store. Now is when you have to figure out some basics... like the ROI on the schedule <Profit Margin, average sale, closing ratio etc>. Now you know how many widgets need to be sold to score a profit, and in what amount of time.
The ads must be compelling. They need to be compelling enough to make a person who has no budget want to buy...,. and they need to be compelling enough to get people in the door and buying BEFORE your bill gets to them at the end of the month. When you present your plan, talk about the end result, not insipid things like "It's important to keep your name out there". Talk about how you are going to drive traffic... and then with your ROI calculation, show how much traffic this business should expect <unless of course if you are afraid to be accountable>. I can guarantee you no other rep is showing "numbers" about the business you are pitching. Most other ad mediums are talking about why they are "number one" or some such crap that has nothing to do with ROI.
Lead with the objection: "I heard you... your budget is shot and I know why.... because it's all spent on the media that have you where you are now. I want you to be able to pay my bill AND get some for you!". Then, show your understanding of their business... the Google map showing all his competitors and a list of their strengths. Then the sheet showing his business and competitive advantages. From there, the ROI calculation showing how many new customers he needs. And finally YOUR plan: "And I'll be coming in on Tuesday and Thursday. I'll ask you how many tickets, and total dollars or average sales... and we will adjust the campaign accordingly".
Okay, time to look at the person in the mirror: Are you WILLING to stake your reputation on results? Are YOU willing to do the work... changing copy weekly, some times daily and putting up with the crap from Production and Traffic? Are you willing to spend a Saturday morning at the store watching who is buying and figuring out why? If so you can beat this objection.
Jane:
I think it may be safe to say that the vast bulk of local advertisers do not budget. Down through the years I would counter the "budgets busted" by asking if we could sit down, go through it, and see just how it was allocated. I even went so far as to volunteer materials from RAB and other sources like Roy H. Williams, that would assist them with budgeting. It was at this point in the conversation that you discover that they really didn't want to buy, they budget from the seat of their pants and in many cases they would appreciate help. Keep in mind when the dust settles you may still not get any business from them that day but you'll find they now trust you because you're the only media rep who offered to help.
If you're dealing with a new business they may just want you gone because they can't be bothered. You then need to evaluate how much you want to pursue the business. As another person said can they really spend much with you; is it really worth your time? All in all keep in mind that the excuse "budget's busted" is probably just that, an excuse. Good luck.
Jane, great question. I was doing a station sales training this morning on this very topic. In all of my years of radio sales I realized that few if any clients actually had a budget. At least not one they stuck to. I tell sales people to be having the right conversation. The one you most likely want to be having is about belief and not budget because belief equates to getting the budget. I once worked with a business owner who kept telling me his budget was shot and had no room to add my radio station. I asked him, "If I guarantee that for every message we air, five people will come in and each will spend $100, will you advertise with me?" His reply, "Of course I would, I'd mortgage my house to make that happen." I told him, "Good, I wanted to make sure this wasn't a money issue."
It wasn't, it was a belief issue. He just told me that if he believed in what the advertising would do, he'd find the money, even though a few minutes earlier he told me his budget was spent. We all find ways to spend money on things we really want. Your conversation needs to be about their belief, not their budget.
